ServiceNow extending M&A strategy with Armis acquisition, says Wells Fargo

ServiceNow (NOW) announced a $7.75B all-cash acquisition of IoT/OT startup Armis, expected to close in the second half of 2026, aligning strategically with its core platform, Wells Fargo analyst Michael Turrin tells investors in a research note. While the deal extends ServiceNow’s history of opportunistic tuck-in M&A, the focus on inorganic growth amid slowing software growth below 20% next year could create narrative noise despite potential product synergies, the firm says. Wells Fargo has an Overweight rating and $255 price target on shares of ServiceNow.